When the Taxman Comes Knocking, Will Americans Report Crypto Gains?
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Bitcoin Magazine, 1/1/0001 12:00 AM PST Cryptocurrency investors appear to be skirting their taxes. Whether keeping with crypto’s anti-establishment roots or for lack of ability, American cryptocurrency practitioners are testing the IRS’s tolerance for crypto tax evasion. Tax day in the United States is tomorrow, April 17, 2018, but according to the popular tax filing service Credit Karma, few cryptocurrency holders have reported earnings or losses on their 2017 tax documents. Out of the company’s 250,000 new filings, under 100 have disclosed capital gains from cryptocurrency investments, figures that are in line with the company’s former reports on cryptocurrency tax documentation. Certainly, Credit Karma’s user base does not constitute the whole of America’s crypto investor populace. But it could reflect the demographic’s general resistance to paying taxes on their investments, and this could have something to do with the IRS’s policy. In 2014, the IRS released an official notice regarding its cryptocurrency tax policy. First and foremost, the IRS treats virtual currencies as property, subjecting them to the same capital gains taxes that affect traditional investments like stocks, bonds and real estate. These taxes are applicable to anyone who has received payment for goods and/or services in crypto (as part of a salary, for instance), as well as miners, who must account for gains as part of their income. The tax code appears straightforward enough, but uncertainty remains. Given that the IRS treats any trade as a taxable event and the onus of reporting rests on the investor, reporting on cryptocurrency investments can seem confusing and convoluted to those untrained in accounting and finance. “Even with the tax deadline rapidly approaching in the U.S., we’re still seeing lots of people unsure about the proper way to prepare cryptocurrency taxes. Properly accounting for crypto-to-crypto trades, trading on multiple exchanges, and purchases made with cryptocurrency can be an overwhelming task,” Chris Kovalik, founder of Cointaxes, told Bitcoin Magazine. Kovalik finds that the IRS’s policy places “the burden … on the taxpayer to follow and account for the government’s guidance when filing taxes.” Unlike other tax codes that offer standards and historical precedent, crypto investors have no touchstone for guidance. According to the Los Angeles Times, the IRS has suggested that taxpayers review “factual scenarios that most closely resemble their circumstances” to seek such guidance, something David Klasing, a tax and accountant lawyer, told the Times amounts to “basically just telling practitioners to take a wild-ass guess.” And this guess could look to answer questions that stem from a variety of scenarios. Along with crypto-to-crypto trades, “[many] people may simply not know that the IRS has stated that spending crypto is a taxable event, akin to a barter transaction,” Jon Brose, an attorney for Seward & Kissel’s Blockchain and Cryptocurrency Group, told Bitcoin Magazine. This means that day-to-day purchases with bitcoin and other currencies are subject to capital gains taxes. As the market matures, there are gray areas still. For example, the advent of airdrops and hard forks for cryptocurrency dispersal means investors will likely have to wrestle with reporting these earnings in their income, as well. As we look down the barrel of America’s first cryptocurrency tax season, early adopters and veteran enthusiasts will likely bear the taxman’s heaviest brunt, as they likely have years of previously unreported gains to follow up on. Depending on the size of their stash, these individuals could be some of the 13,000 users Coinbase was legally obligated to report to the IRS back in February. These account records are likely to belong to those who have realized great profits from their original investments, not your run-of-the-mill investor. Brose believes that the average investor probably doesn’t think to report gains since “the practical problem of tracking which cryptos you have spent or sold” becomes too much of a hassle for reporting a modest portfolio. He also finds that “individuals that are spending crypto frequently on relatively small items may think that it doesn’t make a lot of sense to declare a taxable event every time they buy a cup of coffee.” Given that formal guidance is nebulous and the IRS’s ability to enforce their policy is yet to be seen, cryptocurrency investors may be inclined to take calculated risks that have become commonplace in such a volatile market. But if the IRS wants investors to work with them in the future, things will have to change, Brose argues. “To ensure greater compliance, the IRS ought to make rules for cryptocurrencies that conform to the way crypto actually works and is used, so that taxpayers can accurately compute their tax liabilities arising from crypto transactions.” Until that time, investors must either navigate their filing themselves, seek help from an accountant or taxation service, or hope their portfolios will fly under the IRS’s radar. This article originally appeared on Bitcoin Magazine. |
What Is Ether?
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Bitcoin Magazine, 1/1/0001 12:00 AM PST Ether is the underlying token powering the Ethereum blockchain, but it serves a slightly different purpose than bitcoin does to the Bitcoin blockchain. Although ether is traded on public markets and has displayed price appreciation similar to bitcoin, they are quite different by design. Ether is not intended to be a unit of currency on a peer-to-peer payment network; rather, it acts as the “fuel” or “gas” that powers the Ethereum network. At the highest level, Ethereum is an open-source platform that runs smart contracts. When smart contracts are run on a blockchain, they become self-executing when certain conditions are met. The execution of smart contracts requires computational resources that must be paid for in some way: this is where ether comes in. Ether is the crypto-fuel allowing smart contracts to run. It provides the incentive for nodes to validate blocks on the Ethereum blockchain, which contains the smart contract code. Every time a block is validated, 5 ethers are created and awarded to the successful node. A new block is propagated roughly every 15–17 seconds. Some nodes may find the correct solution to a block without having it included in the network. The Ethereum network rewards these nodes with 2–3 ethers. Individuals interacting with decentralized applications on the Ethereum platform will have to pay the network in ether for the use. Developers are incentivized to create these decentralized applications because they will be paid in ether for their work. Developers are also incentivized to write quality applications because wasteful applications will be more expensive and likely will not be used as frequently as better alternatives. Using this information, the narrative around ether becomes more clear. Its final use will most likely be abstracted by basic button clicking, but assuming Ethereum becomes widely used, ether will be rapidly moving between users and miners. Its value is directly tied to the use of the Ethereum blockchain. Is Ether Inflationary?The total supply of ether is not capped like the total supply of bitcoin. 60 million ether were created during the initial crowdsale, 12 million of which went to early backers and the Ethereum Foundation. Most of the money raised will be used to fund future development initiatives. Ether’s issuance model is unique in that it does not emphasize deflation like most other popular cryptographic assets. Initially, issuance of ether was capped at 18 million per year, which is 25 percent of the initial supply raised in the crowdsale. But more recently, Vitalik Buterin said that issuance levels will be contingent on security rather than a predetermined schedule. Although this rate is fixed each year, the monetary inflation rate actually decreases every year, making ether a disinflationary currency. Disinflation occurs when the rate of inflation shrinks over time. Ether is expected to be lost each year because some users may forget their private keys, some may pass away without transmitting their private keys, and some may send ether to an address without a corresponding private key. As the network grows, it is expected that the annual rate of ether lost will equal the annual issuance rate. The hope is that ether will be deflationary in 2140, around the same time that Bitcoin ceases issuing new coins. For an in-depth analysis of Ethereum’s issuance model, read Joseph Lubin’s piece. These calculations are not set in stone. Ethereum is expected to switch its consensus algorithm from proof of work to proof of stake, which in theory is supposed to be more efficient and require a smaller mining reward. This change has produced some uncertainty within the ecosystem. The Ethereum Foundation is currently researching potential monetary effects and claims that all changes to the network will be handled by smart contracts, as opposed to individuals who may have ulterior motives. This article originally appeared on Bitcoin Magazine. |
Coinbase Buys Earn.com, Gaining Top Talent in the Process
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Bitcoin Magazine, 1/1/0001 12:00 AM PST Cryptocurrency exchange Coinbase is buying Earn.com, a social network that allows users to earn digital currency by replying to emails and completing small tasks online. Coinbase CEO Brian Armstrong made the announcement in a blog post today, April 16, 2018. In addition to welcoming the entire Earn.com team, Coinbase has made Earn.com co-founder and CEO Balaji Srinivasan its first CTO. Both companies are located in the Bay Area. This is Coinbase’s fifth acquisition so far and its most substantial to date. Only last week, the exchange purchased decentralized app browser and Ethereum wallet Cipher Browser. Coinbase has not revealed how much it paid for Earn.com, but to offer an idea of the company’s evaluation, Earn.com has raised more than $120 million in a series of funding rounds. 21 IncEarn.com began life as 21 Inc, a startup best known for creating the 21 Bitcoin Computer, essentially, a Raspberry Pi connected to a bitcoin-mining ASIC, with the idea of building bitcoin miners into devices people already use. The computer first began shipping in November 2015. In October 2017, 21 Inc rebranded itself as Earn.com and notified customers it was ending support for its Bitcoin Computer to focus on allowing users to monetize their email and social media channels instead. Currently, Earn.com pays users in bitcoin, but the company has also developed its own Ethereum-based ERC20 token, dubbed the “Earnable Token,” so that when people complete tasks in Earn.com, they can earn rewards in tokens. The company stated before, there will be no initial coin offering. Users earn tokens for simply signing up on the platform. Coinbase does not support ERC20 tokens yet, but last month, the exchange announced plans to add support for ERC20 technical standards to all its trading platforms. Earlier this month, Coinbase also entered into talks with the U.S. Securities and Exchange Commission to become an alternative trading system (ATS), which would enable it to trade security tokens. TalentAside from all that, Coinbase acquired Earn.com for its talent. Srinivasan himself comes with an impressive skill set. Prior to serving as the CEO at Earn.com, he was general partner at venture capital firm Andreessen Horowitz, where he still sits on the board. He has a B.S., M.S., and Ph.D. in electrical engineering and an M.S. in chemical engineering at Stanford University. In a blog post, Srinivasan details how he took over the gasping 21 Inc in May 2015 and turned it around from a company that was more than $80 million under water to what it is today, “a fast-growing, cash-flow positive business with a multimillion dollar revenue run rate,” he said. The plan is to take Earn.com and “scale it up across Coinbase’s massive user base,” Srinivasan said. Although the new Coinbase CTO was equally tight-lipped on how much Coinbase paid for Earn.com, he added, “And with this deal, the total value of cash, cryptocurrency and equity returned to our shareholders is now in excess of the capital invested in the company.” This article originally appeared on Bitcoin Magazine. |
As Tax Day Nears, bitcoin is Wreaking Havoc
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Inc, 1/1/0001 12:00 AM PST Underreporting is running rampant, and the value of cryptocurrencies has become volatile, as money leaves and re-enters the market |
Pipe Dream: Analysts Mull Natural Gas-Powered Bitcoin Mining Operation
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CryptoCoins News, 1/1/0001 12:00 AM PST A group of Wall Street analysts has a unique idea to allow shale producers in Texa’s oil-rich Permian Basin to profit from the massive amount of natural gas that is currently being wasted as a result of shale extraction: harness it to power a Bitcoin mining operation. Writing in a recent note to clients, a … Continued The post Pipe Dream: Analysts Mull Natural Gas-Powered Bitcoin Mining Operation appeared first on CCN |
Coinsecure May Refund in Rupees, Not Bitcoin After $3.4 Million Heist
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CoinDesk, 1/1/0001 12:00 AM PST Victims of the $3 million theft at bitcoin exchange Coinsecure will receive a refund on their stolen funds, but it may not be in BTC. |
An $800 million crypto hedge fund says bitcoin's recent slump can be pinned on the tax man
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Business Insider, 1/1/0001 12:00 AM PST
Uncle Sam is to blame for bitcoin's recent sell-off. The cryptocurrency declined by nearly 50% in March, from more than $11,500 to $6,500. Pantera Capital, a cryptocurrency hedge fund with nearly $800 million in assets under management, said in an investor letter dated April 11 that Tuesday's deadline for filing taxes in the US is connected to recent selling pressure across the market for digital currencies. "I could imagine that a portion of the selling pressure on the market in general has been unintended tax positions," the letter said. Investors are required to pay taxes on their cryptocurrency investments if they sold their digital-coin holdings at a higher price than they bought them. But since many cryptocurrency exchanges don't send customers tax documents, many may not even know they have to pay taxes on their coins — or how much. "Imagine a trader actively buying and selling BTC, ETH, XRP, etc.," Pantera said. "Great year. Made a ton of money. Kept it all in the markets. Come the spring their accountants tell them that every sale at a profit created a taxable gain." In order to pay the taxes owed on those gains, investors could have sold off some of their coins. Thus contributing to selling pressure. Fundstrat's Tom Lee predicted in a note to clients at the beginning of April that selling pressure would alleviate after Tax Day. But a few things could go wrong. "Regulatory headline risk is still substantial," Lee said. "And sentiment remains awful, as measured by our bitcoin misery index, which is still reading misery." Bitcoin has tumbled by more than 40% since the beginning of the year. Recently, it started picking up some steam, spiking by nearly a $1,000 Thursday. It was last trading close to $8,000. Join the conversation about this story » NOW WATCH: How one CEO went from rejecting an offer from Steve Jobs to an $11 billion IPO |
An $800 million crypto hedge fund says bitcoin's recent slump can be pinned on the tax man
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Business Insider, 1/1/0001 12:00 AM PST
Uncle Sam is to blame for bitcoin's recent sell-off. The cryptocurrency declined by nearly 50% in March, from more than $11,500 to $6,500. Pantera Capital, a cryptocurrency hedge fund with nearly $800 million in assets under management, said in an investor letter dated April 11 that Tuesday's deadline for filing taxes in the US is connected to recent selling pressure across the market for digital currencies. "I could imagine that a portion of the selling pressure on the market in general has been unintended tax positions," the letter said. Investors are required to pay taxes on their cryptocurrency investments if they sold their digital-coin holdings at a higher price than they bought them. But since many cryptocurrency exchanges don't send customers tax documents, many may not even know they have to pay taxes on their coins — or how much. "Imagine a trader actively buying and selling BTC, ETH, XRP, etc.," Pantera said. "Great year. Made a ton of money. Kept it all in the markets. Come the spring their accountants tell them that every sale at a profit created a taxable gain." In order to pay the taxes owed on those gains, investors could have sold off some of their coins. Thus contributing to selling pressure. Fundstrat's Tom Lee predicted in a note to clients at the beginning of April that selling pressure would alleviate after Tax Day. But a few things could go wrong. "Regulatory headline risk is still substantial," Lee said. "And sentiment remains awful, as measured by our bitcoin misery index, which is still reading misery." Bitcoin has tumbled by more than 40% since the beginning of the year. Recently, it started picking up some steam, spiking by nearly a $1,000 Thursday. It was last trading close to $8,000. Join the conversation about this story » NOW WATCH: How one CEO went from rejecting an offer from Steve Jobs to an $11 billion IPO |
Bitcoin tools could make finance system safer, says IMF boss
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The Guardian, 1/1/0001 12:00 AM PST Christine Lagarde believes revisiting crypto-assets could ‘harness gains and avoid pitfalls’ The advance of bitcoin and other digital currencies could make the global financial system safer despite the prospect of “inevitable” accidents waiting to happen, the head of the International Monetary Fund has said. Christine Lagarde said some tools built using the technology behind bitcoin, which are known collectively as crypto-assets, hold the potential to revolutionise the world of high finance by making it faster, cheaper and safer. Among them, there are “real threats and needless fears”, she said. |
What you need to know on Wall Street today
Cardano Price Leads Lonely Advance as Bitcoin Retreats Below $8,000
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CryptoCoins News, 1/1/0001 12:00 AM PST The Cardano price posted a lonely advance on Monday, as the wider cryptocurrency markets slouched into an early-week slump and the Bitcoin price sunk below $8,000. Altogether, the cryptocurrency market cap shed about $13 billion, declining to $322 billion from $335 billion on Sunday for a single-day decline of 3.9 percent. Bitcoin Price Sinks Back The post Cardano Price Leads Lonely Advance as Bitcoin Retreats Below $8,000 appeared first on CCN |
CRYPTO INSIDER: Meet the 12-year-old crypto CEO
CRYPTO INSIDER: Meet the 12-year-old crypto CEO
$1.6 billion bitcoin exchange Coinbase continues its acquisition spree, snapping up another small crypto company
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Business Insider, 1/1/0001 12:00 AM PST
Coinbase's acquisition spree continues. The $1.6 billion cryptocurrency exchange announced Monday that it has acquired Earn.com, a crypto company founded by Balaji Srinivasan, a former general partner at Andreessen Horowitz. Srinivasan is joining Coinbase as its first chief technology officer, a blog post by the company said. The news comes just a few days after Coinbase announced it acquired Cipher Browser, a cryptocurrency wallet company that lets users store ethereum-based tokens. It was reported by CoinDesk's Pete Rizzo in March that Earn.com was in talks with Coinbase. The company, which rebranded at the end of 2017 from 21.co, provides a platform that allows users to earn cryptocurrency by answering emails. "We're going to be doubling down on the Earn business within Coinbase, as they have built a paid email product that is arguably one of the earliest practical blockchain applications to achieve meaningful traction," the company said. My colleague Becky Peterson has reported on Coinbase's M&A ambitions. Coinbase hired its first M&A boss in March to lead a new push for acquisitions and partnerships to expand its opportunities in the booming market. Still, some market observers think Coinbase is biting off more than it can chew. CoinRoutes founder Dave Wiesberger told Business Insider the company should focus its resources on understanding markets, regulations, and developing their trading technology, which is not at the same level as more established exchanges such as the NYSE or Nasdaq. "They have failed to consider the implications of these topics along with understanding institutional needs, including how and why dark pools evolved, and the nature of of fragmentation in displayed markets," Weisberger said. To be sure, Coinbase's institutional grade exchange, GDAX, is working on more mature offerings such as advanced order types and products tied to market data. Also, it is looking to hire a head of market structure to "develop marketplace improvements such as new order types, liquidity incentive programs, and market safeguards," a recently posted job ad said. Join the conversation about this story » NOW WATCH: How one CEO went from rejecting an offer from Steve Jobs to an $11 billion IPO |
Coinbase Just Bought One of Bitcoin's Best-Funded Startups
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CoinDesk, 1/1/0001 12:00 AM PST U.S.-based cryptocurrency exchange Coinbase has confirmed the acquisition of Earn.com, one of bitcoin's best-funded startups. |
XRP falls after Ripple says it wants more regulation
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Business Insider, 1/1/0001 12:00 AM PST
Ripple's XRP cryptocurrency fell as much as 8.5% Monday after the company's head of regulatory relations asked UK regulators to beef up their cryptocurrency rules. "We’re at that time now where we need more clarity and rules and we need more certainty," Ripple's Ryan Zagone told The Telegraph. "It’s a good time to start revisiting that ‘wait and see’ approach taken by regulators." In the interview, Zagone urged British lawmakers to follow Japan's lead in regulating the nascent cryptocurrency space. Lawmakers in that country passed legislation last spring which required all crypto exchanges to apply for licenses in order to operate. “Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors,” he told the paper. Other major cryptocurrencies are also in the red Monday, though none as much as XRP. The third-largest cryptocurrency by market cap has seen steep declines in 2018 as prices for most major cryptocurrencies slid from their mid-December peaks. Since the beginning of the the year, XRP has lost 68%, compared to bitcoin's 40% slide. Ripple has struggled to convince exchanges like Coinbase or Winklevoss-founded Gemini to support XRP. Bloomberg News reported earlier this month that the company had even offered lump sumps of cash to both companies to list its cryptocurrency. Follow XRP in real-time here>> SEE ALSO: The Japanese crypto exchange that was the victim of a $530 million heist is being taken over Join the conversation about this story » NOW WATCH: Wall Street's biggest bull explains why trade war fears are way overblown |
XRP falls after Ripple says it wants more regulation
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Business Insider, 1/1/0001 12:00 AM PST
Ripple's XRP cryptocurrency fell as much as 8.5% Monday after the company's head of regulatory relations asked UK regulators to beef up their cryptocurrency rules. "We’re at that time now where we need more clarity and rules and we need more certainty," Ripple's Ryan Zagone told The Telegraph. "It’s a good time to start revisiting that ‘wait and see’ approach taken by regulators." In the interview, Zagone urged British lawmakers to follow Japan's lead in regulating the nascent cryptocurrency space. Lawmakers in that country passed legislation last spring which required all crypto exchanges to apply for licenses in order to operate. “Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors,” he told the paper. Other major cryptocurrencies are also in the red Monday, though none as much as XRP. The third-largest cryptocurrency by market cap has seen steep declines in 2018 as prices for most major cryptocurrencies slid from their mid-December peaks. Since the beginning of the the year, XRP has lost 68%, compared to bitcoin's 40% slide. Ripple has struggled to convince exchanges like Coinbase or Winklevoss-founded Gemini to support XRP. Bloomberg News reported earlier this month that the company had even offered lump sumps of cash to both companies to list its cryptocurrency. Follow XRP in real-time here>> SEE ALSO: The Japanese crypto exchange that was the victim of a $530 million heist is being taken over Join the conversation about this story » NOW WATCH: Wall Street's biggest bull explains why trade war fears are way overblown |
Promoted: Plutus Is Pursuing the “Holy Grail” of Payment Innovation
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Bitcoin Magazine, 1/1/0001 12:00 AM PST While many people see cryptocurrency as a speculative investment, many of the new asset class’ earliest adopters believe they could be much more promising for everyday currency use. Championing the motto “Spend Crypto, Anywhere,” the U.K.-based project, Plutus, is leading the charge in delivering a worldwide payments solution to make it easier for cryptocurrency users to spend money with merchants. Through this payment solution, online purchases can be made using either Plutus’ Tap & Pay app or physical debit card. With Plutus, prepaid funds can be added by using the pluton token (PLU), Bitcoin, Ethereum and other cryptocurrencies. Steering clear of “innovation for innovation's sake,” Plutus is cutting a new edge in the payments business by making emerging technology tangible and practical for the everyday user. The aim is to make transactions more seamless by offering a trusted and secure mechanism for converting crypto into fiat currency and vice versa. Consumers can spend without being subjected to massive fees while benefiting from additional incentives such as the pluton rewards. These rewards are the signature piece for Plutus’ decentralized loyalty system. Users will get up to 3 percent in pluton as a loyalty reward for every deposit they make in Bitcoin or Ethereum. Since pluton is the preferred currency of the platform, users who transact with pluton are exempt from all fees. “We have created both the first decentralised cryptocurrency-to-fiat loading gateway, as well as the first loyalty rewards token,” said Plutus CEO Danial Daychopan. “Unlike frequent flyer miles and similar centralized bonus programs, this means that customers have full freedom regarding what they do with the rewards they collect, as well as the confidence that their cryptocurrencies are safe on the wallets or cold storage of their choosing.” Three Layers, One Payment Solution The Plutus model is composed of three core solutions:
One of the key benefits of PlutusDEX as a decentralized gateway is that user In essence, Plutus never moves escrowed fiat funds to a customer’s card until that person has successfully sent a crypto transaction. This transaction is then recorded on the public blockchain and confirmed by miners. The crypto is routed directly to the buyer’s wallet of choice before the fiat is released from escrow to the card. Company leaders said that Plutus will appeal most to freelancers, entrepreneurs, miners, traders, digital nomads, developers and tourists. As cryptocurrency continues to grow and mature, Plutus hopes to expand its audience to anyone with a smart device. The Payments Push “We are constantly striving for greater innovation within this space, while always maintaining a core brand ethos which focuses on security and creating exceptional seamless transaction globally,” said CEO Danial Daychopan, echoing a sentiment that seemed to capture Plutus’ aspirations. “Our unique value proposition is that over time, all payment channels and points of friction will be decentralised as far as possible to increase liquidity for both spending and purchasing digital currencies and tokens, enabling exchange without central storage of tokens. This is both more robust and secure than previous alternatives.” When Plutus launched in 2015, several investors stepped forward with interest. However, company leaders wanted to gauge the actual interest level from the audience they were addressing, rather than rely solely on venture capital and independent investors. During a nine-day token sale in June of 2016, Plutus raised over $1 million USD in Bitcoin and Ethereum (at the time of the sale). This in many ways validated their core proposition, namely, how is crypto spent in the “outside” world. “First and foremost, Plutus is an experience, which is why we like to involve the community in shaping the future of our products,” concluded Daychopan. “We are more than just a pretty website and token. We would like to cordially invite everyone to join our BETA waiting list to see for themselves, as we will be rolling out Bitcoin and Ethereum support very soon. If it is up to us, Plutus will reach every corner of the earth.” This promoted article originally appeared on Bitcoin Magazine. |
The most notable — and expensive — financial fraud cases of all time
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Business Insider, 1/1/0001 12:00 AM PST
Financial fraud is a serious white-collar crime that comes with heavy punishment, but the details of the misdeeds can be stranger than fiction. Case in point: The SEC recently charged Kirbyjon Caldwell, a pastor based in Houston, and self-described financial planner Greg Smith in a scheme that allegedly involved luring innocent people into investing in old Chinese bonds with no worth, with the promise of large returns. Twenty nine mostly elderly investors were swindled out of $3.4 million. A DOJ press release states that each defendant could face as many as 30 years in prison, a $1 million fine, and five years of supervised release, among other penalties. Financial fraud isn't new, and the extent of the crime can vary significantly. In some cases, billions of dollars are lost and companies end up bankrupt. Most cases have at least one person, but often a group of fraudsters, going to prison. Some cases involve forged documents, while others focus on trying to sell an item somebody doesn't own. Ponzi schemes are also common. Even bitcoin has been the source of fraud. From corporate scandals, to major forgeries, to individual pyramid schemes, keep reading to see the most notable, and expensive, fraud cases of all time. SEE ALSO: Tourists make easy marks — here are 9 of the most common scams to watch out for on your travels DON'T MISS: Here's how two wildly successful tech entrepreneurs lost their status amid a case of convoluted fraud Charles Ponzi
The Italian-born immigrant created such an uproar over his crimes that any investment fraud or pyramid scheme committed bears his name. From 1918 to 1920, Ponzi ran a large scale international trading scheme involving reply coupons on mail stamps. At one point, Ponzi was making $250,000 a day in post-WWI Boston but ended up owing $7 million and was charged with 86 counts of mail fraud. Enron
The Houston-based energy company had a mighty collapse in 2001 after a failed merger and, what was at the time, the largest US bankruptcy. Enron committed fraud by overstating earnings. Numerous executives were found guilty of various crimes from obstruction of justice, money laundering, and insider training. Bernie Madoff
Madoff is currently serving a sentence of 150-years in federal prison for securities fraud. He was a well-respected investor until it was learned that he was operating a Ponzi scheme that lost a record $65 billion for his investors. Madoff was turned into authorities by his two sons in 2008. See the rest of the story at Business Insider |
Bitcoin Price Could Hit $25,000 This Year, Soar to the Moon After: Analyst
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CryptoCoins News, 1/1/0001 12:00 AM PST The bitcoin price is headed for the stratosphere. The bitcoin forecasts have been pouring in from seasoned investors and strategists like Tim Draper and Thomas Lee, each with a bullish price attached. Now Brian Kelly, founder and CEO of digital assets investment fund BKCM LLC, is joining the chorus, suggesting that bitcoin could set a … Continued The post Bitcoin Price Could Hit $25,000 This Year, Soar to the Moon After: Analyst appeared first on CCN |
Why Ripple's XRP Outperformed the Other Top Cryptos This Week
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CoinDesk, 1/1/0001 12:00 AM PST Ripple's XRP is now outperforming its peers and could continue scaling key levels against bitcoin, the technical charts suggest. |
Why Ripple's XRP Outperformed the Other Top Cryptos This Week
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CoinDesk, 1/1/0001 12:00 AM PST Ripple's XRP is now outperforming its peers and could continue scaling key levels against bitcoin, the technical charts suggest. |
Taiwanese Gangsters Shoot Bitcoin Miner, Who Blames China’s Crackdown
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CryptoCoins News, 1/1/0001 12:00 AM PST Taiwan’s newspaper, Liberty Times Net, has reported that two people shot a bitcoin miner when he refused to fulfill their original contract. Suspects Gao Qitang and Chen Yumin shot Wu Nan (nicknamed “milk”) at the Longhua Hall in Banqiao, New Taipei City on Apr. 14. Under their agreement, Gao and Chen, both members of the ‘Freshwater gang’, raised The post Taiwanese Gangsters Shoot Bitcoin Miner, Who Blames China’s Crackdown appeared first on CCN |
Australian Authorities Charge Woman Over Darkweb Bitcoin Drug Buys
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CryptoCoins News, 1/1/0001 12:00 AM PST Australian federal authorities have pinned multiple charges on a 32-year-old Brisbane woman for purchasing illicit drugs from the United Kingdom, using bitcoin. ‘People shouldn’t assume the dark web is invisible to Australian agencies’ warned Australian Border Force (ABF) Queensland regional commander Terry Price while announcing details of a joint-investigation with the Australian Federal Police (AFP) The post Australian Authorities Charge Woman Over Darkweb Bitcoin Drug Buys appeared first on CCN |
Bitcoin Price Briefly Hits $8,400 and Cardano Surges 11% as Market Recovers
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CryptoCoins News, 1/1/0001 12:00 AM PST Earlier today, on April 16, the bitcoin price briefly remained above the $8,450 mark after recording a massive buy volume across major cryptocurrency exchanges. Cardano has surged by 11 percent as the second-best performer of the day and the market has come back to the $300 billion region. Independent Movements Throughout 2018, the vast majority The post Bitcoin Price Briefly Hits $8,400 and Cardano Surges 11% as Market Recovers appeared first on CCN |
Resistance Ahead: Bitcoin Bulls Must Break $8,500
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CoinDesk, 1/1/0001 12:00 AM PST Bitcoin needs to take out resistance at $8,500 to confirm a long-term bearish-to-bullish trend change, the price charts indicate. |
Shot Taiwanese Bitcoin Miner Blames Trading Crackdown in China
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CoinDesk, 1/1/0001 12:00 AM PST Toughened bitcoin trading rules in mainland China may have led to a Taiwanese bitcoin miner being shot by gangland investors, a report suggests. |
HODL On: In Defense of Bitcoin's Best Investment Strategy
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CoinDesk, 1/1/0001 12:00 AM PST HODLers may be getting a bad rap, but they're still following the best, most tested investment strategy for market, argues Overstock's COO. |
A Bitcoin Rally After Tax Day? Don't Bet the Farm
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CoinDesk, 1/1/0001 12:00 AM PST There are several reasons to discount the contribution of tax-related selling to the Q1 bear market – and thus the chances of a post-April 17 rebound. |